Other riskes

DEX risk

One of the DEX risk is the impermanent loss. It's better to put the assets to somewhere else rather than in DEX.

Another is on-chain vs off-chain order-book.

On-chain order-book is too costy. And it's vulnerable to front running by good arbitrage bots.

Off-chain order-book is easy to maintain and providing a better UX. But it faces regulatory compilance.

Custodial risk

If the private key of a wallet is lost, this key won't be recovered.

If the private key is exposed, the wallet is in danger.

The three types of custody are:

• self-custody

• partial custody

• third-party custody

The lack of custody has been the main reason why hedge and mutual funds couldn't invest in crypto.